Genesee & Wyoming: A Short Line to Big Profit

Shares of the largest operator of local railroad branches could rise 29% as it benefits from consolidation.

With pricing power and growing volumes, things are looking good for the railroad industry. But the outlook for Genesee & Wyoming in particular is even brighter.

Genesee & Wyoming (ticker: GWR) is the largest player in short-line railroads—smaller, local branches of track that connect to larger lines —and the only publicly traded company focused on this part of the market. Genesee stands to benefit not only from macro tailwinds...